New Generation of Emissions Trading Systems in Asia

Emissions trading systems as a policy instrument to tackle greenhouse gas emissions have been around for almost two decades. By imposing a limit on the total amount of emissions, regulated entities are incentivized to reduce their emissions to be able to sell their surplus emissions allowances to others. This is how ETS work – at least traditionally.

However, a new generation of ETS is emerging. ETSs with alternative design elements or hybrid systems are currently under development or being implemented around the world, as countries adapt the market-based instrument to suit their different local contexts and priorities. These include elements like intensity-based caps, or combinations of emissions trading and carbon taxation, or transitioning from voluntary to compliance carbon markets. Such variations demonstrate the dynamism of the policy instrument, and jurisdictions may learn from past experiences on which elements work best in which contexts to achieve different objectives. This webinar presents both a view ahead and also a snapshot of the newest ETS developments in Asia - focusing on India, Vietnam, and Indonesia.

Presentation slides are available for download:

Mohua Mukherjee: "The Indian Carbon Market (ICM) as an instrument on India’s Pathway to Net Zero by 2070"

Dang Hanh: "Vietnam's carbon market development"

Paul Butarbutar: "Update on the regulatory framework for carbon pricing instrument in Indonesia"